John Nash and Game theory

I just finished watching " A beatiful mind".


1) Can someone elaborate in what way Nash equilibrium applies to Poker (for non mathematicians)?


2)What was his work "A Simple Three-Person Poker Game"


3)Was game theory as applied to poker unknown before his work?


thanks


Jaque


"The concept of a Nash equilibrium n-tuple is perhaps the most important idea in noncooperative game theory. ... Whether we are analysing candidates' election strategies, the causes of war, agenda manipulation in legislatures, or the actions of interest groups, predictions about events reduce to a search for and description of equilibria. Put simply, equilibrium strategies are the things that we predict about people"

I have a few refererences on game theory from a math viewpoint which are about 25 years old -- I don't see J. Nash's name mentioned

One example.


Bluffing.


7 stud going into the river I have an obvious 4 flush and you have AA.


Pot limit.


If I never bluff - you always fold when I bet.


If I bluff a little, you are still right to always fold (the wins you get do not offset the losses) Note here I make a little more money.


I bluff a bit more and get to the point where it doesn't matter whether you fold or not. This is the optimum - I am taking as much money out of the game as possible against an adjusting player.


Similar logic applies to the caller.


I should have my hand 2ce as often as not for a pot sized bet, and you should call half the time.